Renault sells majority stake in engine business to Geely, oil company – report
As part of a reported plan to separate itself into electric and internal combustion engine parts, Renault You can sell your engine parts to Geely and an unnamed oil and gas company.
Based on Reuters The Renault Group is planning to announce the split in the northern fall.
The division to be called “Horse” will be based outside France and have the automaker’s petrol, hybrid and transmission facilities across Europe (Spain, Portugal, Turkey and Romania). ) and Latin America.
ReutersTwo sources said Renault will retain a 40% stake in the unit, while Geely will buy 40% and the unnamed oil company the remaining 20%.
The entire department is expected to directly employ around 10,000 people.
While the EV division “Ampère” will have roughly the same number of employees, it will be based in France. Current plans call for the electric vehicle division to list on the stock market in the second half of 2023, although Renault will retain a majority stake.
Sources say that the deal to sell shares to Geely and the oil company must be finalized, and that “other mechanisms exist for partner producers”.
Interestingly, Nissan was offered to participate, but reportedly declined to buy a stake in Renault’s engine and transmission division.
These two automakers are part of the Renault-Nissan-Mitsubishi Alliance, and Renault owns 44% controlling stake at Nissan.
Following the arrest of former CEO Carlos Ghosn at the end of 2018, who is said to have co-hosted the Coalition for the past two decades, the Coalition drifted for a few years before declaring a new plan in 2020 for platform sharing and streamlined development.
Nissan’s failure to participate could indicate different priorities between the two automakers.
If this report proves to be true, it will also be the third major collaboration between Renault and Geely in the last year.
Geely, it should be noted, is not part of the Alliance and has a large portfolio of brands under its control, including Volvo, Polestar, Geely, Lotus, Proton, Lynk & Co, Zeekr, Geometry and London EV Company.
At this time last year, Renault and Geely announced Geely will design and manufacture vehicles for Renault for the Chinese market.
At the beginning of the year, the two companies announced that Renault’s operations in Korea will Build cars based on Geely starting in 2024. These cars will likely be shared with Geely’s Lynk & Co brand and possibly exported to the United States.
In May this year Geely bought 34% shares at Renault Korea Motors – formerly Renault Samsung – continues to struggle in the domestic market against the strength of Hyundai, which also owns the Kia and Genesis brands.
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